This order effectively blames the Palestinians for violence, charging that Arafat'sPalestinian Authority and the PLO have not taken steps to stop militants. Still, President Bush decided not to impose sanctions, which could include closing the PLO office in Washington. A memorandum that prefaces the report waives sanctions, saying they would be against U.S. security interests and that the United States "must maintain contacts with all sides."

Presidential Determination No. 2003-04

November 29, 2002

MEMORANDUM FOR THE SECRETARY OF STATE

SUBJECT: Imposition and Waiver of Sanctions Under Section 604 of the Foreign Relations Authorization Act, Fiscal Year 2003

Pursuant to the authority contained in section 604 of the Foreign Relations Authorization Act, Fiscal Year 2003 (the "Act") (Public Law 107-228), and pursuant to section 603 of that Act, regarding noncompliance by the PLO and the Palestinian Authority with certain commitments, I hereby impose the sanction set out in section 604(a)(2), "Downgrade in Status of the PLO Office in the United States." This sanction is imposed for a period of 180 days from the date hereof or until such time as the next report required by section 603 of the Act is transmitted to the Congress, whichever is later. You are authorized and directed to transmit to the appropriate congressional committees the initial report described in section 603 of the Act.

Furthermore, I hereby determine that it is in the national security interest of the United States to waive that sanction, pursuant to section 604 of the Act. This waiver shall be effective for a period of 180 days from the date hereof or until such time as the next report required by section 603 of the Act is transmitted to the Congress, whichever is later.

You are hereby authorized and directed to transmit this determination to the Congress and to publish it in the Federal Register.